Vizsla Resources Announces Closing of Oversubscribed $1.978m Private Placement
TSX VENTURE: VZLA
Vancouver, British Columbia / TheNewswire / June 6, 2019 - Vizsla Resources Corp. (TSX-V: VZLA) ("Vizsla" or the "Company") is pleased to report that it has closed the oversubscribed non-brokered private placement (the "Private Placement") as previously announced on May 15, 2019 and May 28, 2019.
Pursuant to the Private Placement, Vizsla issued 13,192,829 units ("Units") of the Company at a price of C$0.15 per Unit for gross proceeds of C$1,978,924. Each Unit is comprised of one Share and one full Warrant. Each full warrant will be exercisable to acquire one common share of Vizsla at an exercise price of C$0.25. The warrants will have an expiry date of two years from the date of issue.
Michael Konnert, President and CEO stated, "We are very pleased to close this oversubscribed financing, having originally set out to raise only C$1,000,000. We would like to thank our investors for their support. Vizsla is now well capitalized and will continue to work to maximize shareholder value."
Insiders of the Company subscribed for 2,899,667 units, or 22%, of the Private Placement. Each insider's subscription will be considered to be a related party transaction under Multilateral Instrument 61-101 ("MI 61-101"). The Company is exempt from the formal valuation and minority approval requirements under MI 61-101 on the basis that the fair market value of the transactions with the insiders did not exceed 25% of the Company's market capitalization.
In connection with the closing of the Private Placement, the Company has paid eligible finder's fees to Haywood Securities Inc., PI Financial Corp. and Mackie Research Capital Corporation for an aggregate amount of C$87,149.98 cash and 581,000 brokers' warrants. The brokers' warrants are exercisable at C$0.25 per warrant share for a period of two years from the issue date.
All securities issued pursuant to the Private Placement will be subject to a four-month hold period under applicable Canadian securities laws. Net proceeds from the Private Placement will be used for corporate development and general working capital purposes.
The securities to be issued pursuant to the Private Placement have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "1933 Act"), or under any state securities laws, and may not be offered or sold, directly or indirectly, or delivered within the United States absent registration or an applicable exemption from the registration requirements. This news release does not constitute an offer to sell or a solicitation to buy such securities in the United States.
About Vizsla Resources
Vizsla is a mineral exploration company engaged in the business of the acquisition, exploration and development of mineral resource properties. The Company has approximately 20,000,000 shares outstanding and controls the 100%-owned Blueberry copper-gold asset in British Columbia. Vizsla's common shares trade under the symbol "VZLA" on the TSX-V. The Company website can be found at www.vizslaresources.com
Contact Information: For more information and to sign-up to the mailing list, please contact:
Michael Konnert, President and Chief Executive Officer
Tel: (604) 838-4327
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Cautionary Note Regarding Forward-Looking Information
Certain statements in this press release related to the Private Placement, the securities issuable thereunder and the intended use of proceeds are forward-looking statements and are prospective in nature. Certain statements in this release are forward-looking statements, which include regulatory approvals, the business of the Company and other matters. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forwarding looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, estimates, forecasts, projections and other forward-looking statements will not occur. Forward-looking statement are necessarily based upon a number of factors that, if untrue, could cause the actual results, performances or achievements of the Company to be materially different from future results, performances or achievements express or implied by such statements. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.
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